The company filed for bankruptcy Friday after the break-in at its San Diego headquarters led to the electronic escape of detailed medical information for roughly 14,000 people, according to papers filed in U.S. Bankruptcy Court in Wilmington, Del.

“The cost of dealing with the breach was prohibitive” for the company, Impairment Resources said when explaining its decision to file for Chapter 7 bankruptcy protection.

The company said its assets are worth about $226,000, an amount that, even after money trickles in from liquidating sales, likely won’t be enough to pay lender Insurance Recovery Group and its $583,000 loan, Impairment Resources said in court papers.

The company also faced the threat of even more debt with customers and individuals threatening to sue it over the privacy breach.

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